Kumho Petro Chemical Co.,Ltd's (KRX:011780) market cap up ₩208b last week, benefiting both individual investors who own 47% as well as insiders

Key Insights

• The considerable ownership by individual investors in Kumho Petro ChemicalLtd indicates that they collectively have a greater say in management and business strategy
• The top 17 shareholders own 50% of the company
• 29% of Kumho Petro ChemicalLtd is held by insiders

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If you want to know who really controls Kumho Petro Chemical Co.,Ltd (KRX:011780), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week’s ₩208b market cap gain, insiders too had a 29% share in those profits.

Let's delve deeper into each type of owner of Kumho Petro ChemicalLtd, beginning with the chart below.

Check out our latest analysis for Kumho Petro ChemicalLtd

What Does The Institutional Ownership Tell Us About Kumho Petro ChemicalLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Kumho Petro ChemicalLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kumho Petro ChemicalLtd's earnings history below. Of course, the future is what really matters.

Kumho Petro ChemicalLtd is not owned by hedge funds. Chul-Wan Park is currently the company's largest shareholder with 12% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 8.4% by the third-largest shareholder. Jun-Kyung Park, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Kumho Petro ChemicalLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Kumho Petro Chemical Co.,Ltd. Insiders own ₩881b worth of shares in the ₩3.0t company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Kumho Petro ChemicalLtd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Kumho Petro ChemicalLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Kumho Petro ChemicalLtd .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.